Hospitality firm Oyo on Friday said its founder Ritesh Agarwal has signed a deal to buy back shares worth $2 billion (around Rs 13,770 crore) from early investors through his Cayman islands-registered entity, RA Hospitality Holdings, to almost triple his stake in the company.
Lightspeed Venture Partners and Sequoia India, Oyo’s early supporters, are selling part of their holdings in order to help Agarwal increase his stake, while remaining invested significantly in the company’s long-term mission, Oyo said in a statement.
“The company’s founder and CEO Ritesh Agarwal, through RA Hospitality Holdings (Cayman), has signed $2 billion primary and secondary management investment round, supported by global institutional banks and his financial partners,” it added.
As per sources in know of the matter, after the entire process is completed, Agarwal’s stake in Oyo will rise from the current 9-10 per cent to around 30 per cent. This would take the valuation of the company to around $10 billion.
“As an entrepreneur and on behalf of the company’s management, I am thankful to have been given the opportunity to rededicate ourselves to the company’s mission of building the world’s most loved hospitality brand that is focused on bringing a better lifestyle for the common man,” Agarwal said.
The company has attracted some of the world’s leading investors, including Airbnb, SoftBank Vision Fund, Lightspeed Venture Partners, Greenoaks Capital, Sequoia India and Hero Enterprise, the statement said.
“I am … delighted to have gotten the support of all our investors, the board and above all the institutionalised financial partners that have provided the necessary financial support towards realising this vision,” Agarwal said.
“We have confidence in Ritesh’s vision for Oyo and how the team has come together to build a truly global brand from India. It has been an exciting journey so far and we hope to achieve many more milestones together in the time to come,” SoftBank Vision Fund managing partner Munish Varma said. FE